904-860-1016 | mkwcpa@comcast.net

Schedule your free consultation today
  • Home
  • Tax
    • Tax Preparation and Planning
    • Tax Resolution
    • Help with Your IRS Audit
    • Filing Prior Years Return
    • Owing the IRS Money
    • Behind on Payroll Taxes
    • When Your Spouse Owes the IRS
  • Accounting
    • Accounting Services
    • Bookkeeping
    • Payroll
    • Advisory Services
    • Cash Flow Forecast
    • Cloud Accounting
  • Industries
    • Services
    • Construction
    • Medical and Health Care
    • Real Estate
    • Non Profit
    • Retail
    • Restaurant
    • Manufacturing
    • Wholesalers and Distributors
    • eCommerce
  • Resources
    • Resources
    • Mobile Accounting
  • Blog
  • About us
  • Contact
  • Home
  • Tax
    • Tax Preparation and Planning
    • Tax Resolution
    • Help with Your IRS Audit
    • Filing Prior Years Return
    • Owing the IRS Money
    • Behind on Payroll Taxes
    • When Your Spouse Owes the IRS
  • Accounting
    • Accounting Services
    • Bookkeeping
    • Payroll
    • Advisory Services
    • Cash Flow Forecast
    • Cloud Accounting
  • Industries
    • Services
    • Construction
    • Medical and Health Care
    • Real Estate
    • Non Profit
    • Retail
    • Restaurant
    • Manufacturing
    • Wholesalers and Distributors
    • eCommerce
  • Resources
    • Resources
    • Mobile Accounting
  • Blog
  • About us
  • Contact

Business Meal Deduction Changes from the Consolidated Appropriations Act

May 20, 2021 In Blog, Tax
Tweet
Share
Share
Pin

The Consolidated Appropriations Act that was signed into law December 27, 2020 includes a temporary provision allowing a 100 percent write-off for business meals from January 1, 2021 through December 31, 2022.  The food and beverages must be provided by a restaurant, although they do not need to be consumed on a restaurant’s premises. The deduction also includes any delivery fees, tips and sales tax.  This is an increase from the 50 percent deduction that applied for 2020 and earlier years.

It is important to note that other than lifting the 50 percent limitation on deductions for meal expenses, this legislation doesn’t amend any of the other rules related to business meal deductions.  Therefore, to be deductible:

  • Business meals should still have a business purpose and involve dining with current or prospective customers, clients, suppliers, employees, partners, or professional advisors.
  • The food and beverages should not be lavish or extravagant under the circumstances.
  • You or one of your employees must be present when the food or beverages are served.

Although meals are 100 percent deductible, entertainment expenses are still disallowed.  So, while taking a client out for a dinner is tax deductible, the cost of the baseball game after dinner is not.  Furthermore, if an entertainment event includes food and beverages, they must either be purchased separately from the entertainment or broken out on a separate invoice or receipt.  Be sure to update your chart of accounts to make an account for meals and another for entertainment.

Tweet
Share
Share
Pin

Monthly Archives

Categories

  • Accounting (24)
  • Accounting Software (2)
  • Blog (6)
  • Bookkeeping (1)
  • Bookkeeping Tips (4)
  • Business Development (13)
  • Business Growth (6)
  • Business Tips (53)
  • Cool Tech Tools (12)
  • Customer Service Tips (5)
  • Decision-Making Tips (3)
  • Expense Reduction Tips (1)
  • Management Tips (8)
  • Payroll Tips (3)
  • Profitability Tips (10)
  • Tax (36)
  • Tax Tips (17)
  • Time Management Tips (4)
  • Uncategorized (1)

Sitemap

  • Home
  • Tax
  • Accounting
  • Industries
  • Resources
  • Blog
  • About Us
  • Contact

Contact Us

Tax Resolution services

IRS Tax Relief Pros

7563 Philips Hwy
Bldg 200 Ste 206
Jacksonville, Florida 32217
United States

904-860-1016 | mkwcpa@comcast.net

Client Portal Login

Schedule your free consultation today

Copyright Sandra L. Leyva, Inc. 2022 | Professional Site Design by Accelerator Websites | Powered By ThriveFuel